Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) can deliver around 20% growth in copper production over the next three years, that's according to analysts at Citi, pointing to the ramp-up at Oyu Tolgoi as a key contributor.
The broker said the mine will also bring increased volumes of gold and silver by-products, helping lower unit costs. Rio has already guided to copper unit costs of $1.10–$1.30 per pound, Citi noted.
“We believe that it could exit the year 2025 towards the lower end of the range (or better),” analysts said.
Citi forecasts a shift in the company’s earnings mix, with iron ore falling to 48% of group earnings by 2026, down from 81% in 2023, signalling a diversification into copper and other commodities.
Analysts at the American bank expect the bulk of future capital expenditure to go into Rio’s Argentina lithium project, which are set to feature in an capital markets day. Cit noted that the investor event should provide better visibility on Rio’s 3–5 year growth plans.